Snap Inc (snap) Has No Friends At The Minute!

Discussion in 'Investment Charts' started by longtermbull, Jul 18, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Snap Inc (SNAP) is best know for its SnapChat app and recently hit the market in a blaze of glory. Just a short while later the shares are nearly half of their post float high. Have they been oversold just as they were over bought just after the float?

    Price $14.73 @ 18 July 2017

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  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I believe they were way overpriced and over-pumped early on. I have a put I bought recently for almost nothing when it was over $20 that it would drop below $17... I'm thinking that it will drop even lower when it reports its next earnings soon - I think low teens, perhaps even single digits is not out of the question - we shall see... :D
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    If we get even a whiff of a slowdown in activity or a slowdown in new account numbers the stock will tank. However, I think SNAP is one of these shares which will bounce sharply as and when technology shares are truly back in favour even just on improved investor sentiment. At some point it could become a takeover target - we have seen similar situations before.
     
  4. gowiththeflow

    gowiththeflow Senior Investor

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    Constant talk that Facebook is going to "kill" Snapchat with its own version of Snapchat is starting to impact the way investors are viewing the stock. Not looking good - in free-fall, not a friend in the world.

    Price $13.81 @ 28th July 2017
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    Could SnapChat become a takeover target at these levels or lower?
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I've done very well betting against SNAP with puts. I will be buying another put or puts in the next few days ahead of earnings.
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    The slightest whiff of a slowdown in activity across the customer base and the stock could be in big trouble.
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    SNAP's lockup is also expiring today I think.
     
  9. longtermbull

    longtermbull Administrator Staff Member

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    Those loose sellers in the lockup would be better off selling asap rather than the potential threat of sellers hovering over the shares for weeks or months to come. This "will they wont they" situation could see the shares go a lot lower.
     
    Last edited: Aug 12, 2017 at 10:32 PM
  10. longtermbull

    longtermbull Administrator Staff Member

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    Shares in big trouble - still got your put JR?

    Price $11.83 @ 11 Aug 2017
     
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